The Australian Federal Treasurer Wayne Swan has given approval for Chinese mining, trading and steelmaking company Sinosteel to acquire up to a 49.9 percent stake in Australian iron ore exploration company Murchison Metals Ltd (Murchison), under the Foreign Acquisitions and Takeovers Act 1975.
Mr. Wayne Swan said in a statement that a shareholding of up to 49.9 percent in Murchison will maintain diversity of ownership within the Mid-West region, which may become a significant new source of iron ore exports to the north Asian iron and steel markets.
Sinosteel had previously sought to buy up to 100 percent of Murchison and has recently acquired more than 97 percent of Midwest Corporation Limited, which has iron ore deposits adjacent to Murchison's.